The fall of WeWork shows the deepening cracks in real estate

Since it was founded in 2010, WeWork has not once turned a profit. For years its cash-torching ways went unchallenged, thanks to the reality-distorting powers of its flamboyant founder, Adam Neumann, who succeeded in convincing investors, most notably SoftBank, that it was not an office-rental business but a zippy tech firm on a mission to “elevate the world’s consciousness”. At the height of the silliness in early 2019, in the lead-up to an initial public offering (IPO), the company was valued at $47bn.

The unravelling began soon after, as outside investors balked at its frothy valuation and questioned an unorthodox governance arrangement that

→ Continue reading at The Economist

Similar Articles

Advertisment

Most Popular